AkzoNobel Makes Strategic Move Into Chinese Automotive Market

AkzoNobel is to significantly boost its presence in the Chinese automotive market after agreeing to acquire Changzhou Prime Automotive Paint Co., Ltd.

09.08.10

AkzoNobel is to significantly boost its presence in the Chinese automotive market after agreeing to acquire Changzhou Prime Automotive Paint Co., Ltd. Prime is one of China's largest vehicle refinish suppliers and a leader in the fast-growing mid-market segment. This sector is estimated to double in size within the next five years. Based in Jiangsu Province, the company develops, manufactures, markets and distributes automotive coatings, primarily for the refinish market. The agreement follows AkzoNobel CEO Hans Wijers' recent announcement at the World Expo 2010 in Shanghai that the company plans to double its revenue in China to $3 billion within five years.

"This is an excellent deal involving an extremely well run business which gives us strong representation in one of China's most promising growth segments," said AkzoNobel's board member responsible for performance coatings, Leif Darner. "Our global capability, combined with Prime's marketplace knowledge, products and technical know-how, creates an enviable strategic proposition and will allow us to significantly grow ahead of the market."

Through its car refinishes business, AkzoNobel is mainly active in China's premium and commercial vehicle refinish sector, represented by its Sikkens, Lesonal and Miluz brands. The Prime agreement now opens up an opportunity to become the clear market leader in the attractive vehicle refinish mid-market segment.

"I am very happy to have concluded such an exciting deal, which promises great things for the future," said Prime chairman and CEO, Bao Yifan, who will retain a key role within the business. "With AkzoNobel's scale and expertise, we are ideally positioned to continue growing strongly and aim to capture further market share."

"This is an important transaction which gives us access to superior products and new technologies—supported by strong brands and a loyal distributor base—enabling us to gain a competitive advantage in a market with sizeable potential where we previously had limited presence," said Keith Power, AkzoNobel's regional director for the car refinishes business in Asia.

AkzoNobel currently employs around 6,500 people in China, with the country hosting 11 percent of the company's research, development and innovation resources. Revenue for 2009 totaled $1.5 billion.

Related Paint & Coatings Manufacturer News

Sherwin-Williams Automotive Finishes will become 'The Official Automotive Paint of NASCAR.' The announcement complements recent news that in May, 2013, The Sherwin-Williams Company signed a multi-year partnership designating the n…

PPG Industries has relocated its regional office for automotive refinish operations in Southwest China to the Chengdu Economic and Technological Development Zone. The relocation ceremony also marked the inauguration of a new Chengdu training center f…

Nippon Paint Auto has announced that its products have been adopted by U.S. auto parts suppliers. As a result, Nippon Paint China has become a supplier of coating for U.S. auto parts.
In addition, BKNP Automotive Coatings (Shanghai) Co., Ltd.…

Japanese paint manufacturer, Nippon Paints is setting up a new plant in Bawal, India to produce automotive refinishing paints.
According to Ramakanth Akula, president, decorative, Nippon Paints India, the decorative paint segment, which was growing…

BASF plans to invest about €90-million to build a world-scale plant for the production of high performance resins and electrocoat (e-coat) in Shanghai, China, to support growing demand for automotive coatings in Asia Pacific.
“The continu…

BASF has unveiled its annual automotive color trend report, which looks 2-3 years out, based on research efforts by its team of global color design experts. The theme of the forecast, "Making Headway" indicates a movement towards more color…

PPG Industries recently celebrated the 50th anniversary of its electrocoat systems at its China headquarters in Shanghai.
PPG was the first company to introduce electrocoating technology commercially in an automotive OEM (original equipment manufact…

The PPG Industries Foundation donated $5,000 to the [Women in Engineering (WiE) Program at The Ohio State University to support the WiE CHEER (CHEmical Engineering Rocks!) summer day camp for girls about to enter ninth grade. For a third consecutive…

BASF is going to expand its production capacity for waterborne coatings in the Demarchi Coatings Site, located in São Paulo state, Brazil. The €2 million investment will increase its capacity of both waterborne primer and basecoats. The e…

PPG Industries recently held a ceremony to celebrate the opening of its new automotive coatings development and application center in Tianjin, China. This facility is the first of its kind locally, and it will focus on the development of automo…

YPSILANTI – Three new coating technologies resulting in patents will streamline the coating process and reduce manufacturing costs within the automotive industry.
Dr. Jamil Baghdachi, a professor who specializes in polymers and coatings in the…

Business Development Asia LLC has announced that its client, The Sherwin-Williams Company, has acquired 100 percent of Changzhou Pulanna Coating Co., Ltd. Pulanna is a leading manufacturer of automotive coatings for sale in the Chinese aftermar…

PPG Industries has announced the induction of four science and technology leaders as “distinguished colleagues” into the PPG Collegium. At a recent dinner, Chairman and CEO Charles E. Bunch and chief technology officer Charles F. Ka…

Designers from BASF Automotive Coatings have announced the results of its latest automotive color trend report. In the report, BASF color experts from North America, South America, Europe and Asia provide a forecast of the automotive colors of the fu…